What is Operations Management?

Operations Function: The arrangement of resources that are devoted to the production and delivery of products and services Operations Management: The activity of managing the resources that are devoted to production and delivery of products and services Operations Function is Fundamental for All Organizations.

A General Model
All operations are input-transformation-processes.

All operations produce products and services by changing inputs into outputs using an inputtransformation-output process. (N, Slack; S, Chambers; R, Johnston; 2007)

Operations are processes where input resources transform something, or transform themselves into outputs. Transformed resources are one set of inputs in an operation and are treated, transformed or converted in the process. Processing inputs of the customer by transforming their psychological state. Additionally transforming the physical state of materials as well as information. The other set of inputs are those that are involved in transforming resources. The staff and the facilities form the building blocks of all operations. In terms of outputs services are intangible i.e. they cannot be touched and generally the life of a service is a lot shorter. Outputs: Pure goods: Tangible can be stored, production precedes consumption, low customer contact, can be transported, quality is evident. Pure Service: Intangible cannot be stored, production and consumption are simultaneous, high customer contact, cannot be transported, quality difficult to judge.

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